New Court Filing Opposes Sam Bankman-Fried’s Defense Strategy
Prosecutors in the fraud trial of Sam Bankman-Fried, the former CEO of FTX, are opposing his attempt to use arguments about the US regulatory framework to defend himself against the charges. In a recent court filing, the government argues that Bankman-Fried should not be allowed to claim innocence based on the fact that FTX was not regulated in the United States and that he followed the rules with respect to FTX US.
The defendant argues that the laws or lack thereof are relevant because they would determine whether he misappropriated funds or not. Bankman-Fried suggests that there are no specific laws prohibiting crypto exchanges from using customer-deposited funds for their own purposes.
However, prosecutors argue that this argument is irrelevant and could confuse the jury. They state that the existence or absence of regulation is not relevant to whether money was entrusted to Bankman-Fried’s care by his victims. They also allege that he made material misrepresentations to customers, which is unrelated to the absence of applicable laws or regulations.
Bankman-Fried’s Trial Continues
Sam Bankman-Fried’s trial is currently in its second day. If convicted, he could face several decades in prison.
Hot Take: Prosecutors Reject Defense Strategy in Bankman-Fried Trial
In Sam Bankman-Fried’s ongoing fraud trial, prosecutors have strongly opposed his defense strategy of using arguments about US regulations. The government argues that Bankman-Fried should not be allowed to claim innocence based on FTX’s lack of regulation in the US and his compliance with rules regarding FTX US. The defendant contends that these regulations are relevant in determining whether he misappropriated funds. However, prosecutors assert that the absence of regulation is not germane to whether money was entrusted to Bankman-Fried’s care by his victims. They also claim that he made material misrepresentations to customers, which is unrelated to the absence of applicable laws or regulations. The trial continues, and Bankman-Fried faces a potentially lengthy prison sentence if convicted.
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